PRESENTATION OUTLINE

  1. INTRODUCTION
  1. PROGRESS IN SOLID MINERALS DEVELOPMENT
  1. GDP CONTRIBUTION IN THE SOLID MINERAL SECTOR
  1. POSITION OF NIGERIA SOLID MINERALS RELATIVE TO

THOSE OF AFRICAN COUNTRIES

  1. ROLE/CONTRIBUTIONS OF ENGINEERS IN THE MINING

SECTOR

  1. RECOMMENDATIONS
  1. CONCLUSION

INTRODUCTION

Solid mineral is a naturally occurring substance that is inorganic and can be represented by a chemical formula, it is abiogenic and has an organized atomic structure. The Nigerian Extractive Industry and Transparency Initiative (NEITI) reports show that Nigeria has close to40 solid and precious minerals which has remained largely untapped over the years. Fig. 1 show solid minerals map location.

Fig. 1, Showing solid minerals map location in Nigeria

Despite the abundant deposits of solid mineral in the country, the solid mineral sector has not contributed significantly to the GDP. The emphasis of the present government at diversification is a step towards the right direction, as solid minerals are key to economic diversification.

With the unstable price of crude oil in the international market, the recession being experienced and the need to provide employment for the teaming millions of unemployed Nigerians, an activity such as developing the solid mineral sector which has a potential of catalyzing “rural industrial revolution” deserves to be given all necessary attention.Prior to the discovery of crude oil, Nigeria had a fair share of mining activities ranging from tin mining in the northern part of the country, coal mining in the east and precious stones such as gold in the west, however the industry was relegated to the background with the advent of petroleum.

The neglect of the solid mineral sector over the years has given rise to attendant problems such as:

  • Illegal trading of highly priced metals
  • Deployment of poor mining methods by locals
  • Economic degradation
  • Spread of ailments from metals
  • Loss of revenue through smuggling activities

2.PROGRESS IN SOLID MINERALS DEVELOPMENT

The global demandfor mineral resources is on the rise and mining activities contributed to the rapid development of countries like Australia, Malaysia, South Africa, and China because successive governments in the country could galvanize players in the industry and provided a framework that encouraged its development. Today in Australia, mining generates up to $140 billion US dollars representing about 54% of the country’s annual sales of good and service. The mining sector in the country provides direct employment for over 200,000 people and support for additional 600,000. South Africa generates up to $ 30 billion annually from mining activities representing about 10% of the nation’s GDP and India, a country said to be less endowed than Nigeria in terms of solid mineral

Past Policies of Nigerian Government onMininginclude: -

  • Several attempts made by the Nigerian government to develop the mining sector by enacting policies that will guide its operation. However, little success has been recorded. Some of the policies include: -
  • New National Policy on Solid Mineral development (1998).
  • Enactment of Minerals and mining act of 1999.
  • Development of 7 years Strategic Action Plan for solid minerals in Nigeria (2002-2009)
  • Establishment of Mines and Environmental Compliance Department to ensure best practices.
  • Establishment of the Artisanal and small-scale mining department as a focused department for small entrepreneurs and local content.

China currently supplies about 45% of the world steel requirement. Where does Nigeria stand?

Mining activities has always existed in Nigeria and still exists;Daily, people operate mines ranging from locals searching for precious stones, tin mining, gold etc. to the big quarries exploring rock for construction purposes. The challenge however is that despite several attempts, government has not been able to come out with an articulate and dynamic policy that will drive and enforce regulations in the industry. It is estimated that well over 80% of mining activities in Nigeriais through Artisanal and small-scale mining where the trade channels are not regulated by government leading to loss of revenue and exposure of the local work force to unmitigated risks. The lead poisoning incident in Zamfara state is still very fresh in the memories of Nigerians. Table I shows location and uses of solid minerals in Nigeria.

S/N / SOLID MINERAL / LOCATION/STATES / USES / REMARKS
1 / Coal, Lignite & Coke / Enugu, Kogi Benue, Nassarawa / Alternative source of power / Large market in Italy, UK
2 / Gold and Gemstones / Bin Yauri, AnkaMalele (Northern Nigeria),Iperindo (Osun state) ,Kaduna and Sokoto / Jewelry / Only small scale mining
3 / Columbite Wolframite & Tantalite / Nassarawa State, Jos Plateau / Electronics manufacturing / Only small scale mining. But vary valuable rare mineral
4 / Bitumen
(Also known as tar sands)
Reserves of bitumen deposits exceeds 45 billion tons. / Lagos, Ogun, Ondo, Edo / Used largely as glue or binders mixed with aggregate to create asphalt concrete. Other uses include water proofing production, roofing felt for sealing flat roofs. / Road project & Construction industry
5 / Iron Ore / Itakpe, Kogi state, Anambra, Benue, Aladja / Concentrate used largely for the Ajaokuta steel company / Other Steel Rolling Mills. Bilateral relationship on foreign iron iron ore in Guinea
6 / Uranium / Cross River, Adamawa, Taraba, Plateau, Bauchi, Kano / The main use in the civilian sector is to fuel nuclear power plants / Source of nuclear power for the Military
7 / Lead / Cross River, Delta, Benue, Bauchi, Ebonyi / Used in the manufacture of lead-acid batteries. Also used in Alloys such as fusible metal, solder and antifriction metal. / Largely demanded in the manufacturing industry.
8 / Zinc / Taraba, Cross River, Delta, Benue, Bauchi, Ebonyi / Used in manufacture of paints, rubber, cosmetics, medicine, inks and soap / Zinc-Oxide is widely used in the manufacturing industry.
9 / Kaolin / Benue Bauchi, Anambra, Abia / kaolinisusedto treat diarrhea and to relieve soreness and swelling inside the mouth caused by radiation treatments / Peopleuseit to make medicine.
High market value. Also industrial applications and ceramics technology
10 / Limestone / Abia, Akwa Ibom, Benue, Borno, Edo / used in the manufacture of glass, and of cement, building material, and
to purify iron in blast furnaces. / quicklime and slaked lime are all used to neutralize excess acidity - which may be caused by acid rain - in lakes and in soils

Table 1: Location and uses of solid minerals in Nigeria

With over 40 mineral deposits identified and available in commercial quantity, tapping the minerals will take several years of planning, exploration, and development. There is a need to fast track progress made in the past years on iron ore exploration in the country. Government should be able to quickly resolve the impasse delaying the steel rolling mills from operating, the billion-dollar investments have become obsolete but can be re-engineered for the benefit of the nation. The waterways should be made accessible to enhance transportation of iron ore to designated area where they will be converted into useful products. With over 3 Billion tons of steel deposit, this is an industry that has a potential of earning close to that of the oil sector or perhaps more. It is worrisome that despite the large deposit of steel in the country, the Chinese firm handling the construction of the $1.6 billion standard gauge rails from Lagos to Ibadan with a spur to Apapa and the line from Lagos to Kano plan to importover 50,000 tons of rail steel from China for construction works.

2.1Contribution of Bitumen into Economy Development

Bitumen is a product that occurs naturally or can be extracted from the fractional distillation of crude. In Nigeria, there is an estimated deposit of over 1 Billion cubic meters of bitumen occurring. Failed attempts have been made to tap this product in Ondo state in the recent past and the cost of roads in Nigeria over the years has increased from about 20 Million Naira per km in the 90’s to over 200 million Naira and even more in some cases as the cost of bitumen which is the single most expensive road component continue to soar. It is time government sets up a high-level committee to work on this aspect with a view of finding how to tap this essential mineral deposit.

3.0GDP CONTRIBUTION IN THE SOLID MINERAL SECTOR

Fig.2, Mining Sector’s contribution to GDP

TheNigerian economy fell into recession in the second quarter (Q2) of 2016. It recorded a GDP growth rate of 2.06% ( owing, amongst other variables, to the fall in price of oil.

Contribution of oil & gas to the nation’s GDP was equally affected. The correlation between the Nigerian oil sector and Gross Domestic Product (GDP) tells a profound story. Fig. 2 shows mining sector contribution to GDP. See Table 2 below.

3.1GDP Contribution per Sector

S/N / SECTORS / Q1
2015 / Q2
2015 / Q3
2015 / Q4
2015 / Q1
2016 / Q2
2016
1 / OIL & GAS / 10.45 / 9.80 / 10.27 / 8.06 / 10.29 / 8.26
2 / MINING & QUARRY / 10.61 / 9.95 / 10.40 / 8.21 / 10.34 / 8.41
3 / TRADE / 17.77 / 17.22 / 16.24 / 16.68 / 18.19 / 17.57
4 / AGRICULTURE / 19.79 / 21.12 / 26.79 / 24.18 / 20.48 / 22.55
5 / INFORMATION &
COMMUNICATION / 11.47 / 12.25 / 9.80 / 11.26 / 11.98 / 12.68
6 / REAL ESTATE
SERVICES / 6.76 / 7.83 / 7.57 / 8.26 / 6.46 / 7.57

Table 2: GDP contribution per sector

With appropriate technology, ideas and innovation for the development of MSMEs subsectors will be a gateway to the economics of the continent. Engineers can boost the development of solid minerals which is a major component of SMEs in line with SDGs.

A large percentage of the population survives on informal labour. Some people, particularly the untrained youth are currently finding it difficult to find stable formal employment.

4.0POSITION OF NIGERIAN SOLID MINERALS RELATIVE TO THOSE

OFAFRICANCOUNTRIES

Potential to match African counterparts

Fig. 3, Percentage contribution of mining sector to GDP

“The low contribution of the mining sector to the Nation’s GDP has not always been the case as Nigeria once had a booming mining industry. Like the agricultural sector the discovery of oil resulted in the gradual neglect of the sector. Before the oil boom, Nigeria’s economy was largely sustained by agriculture and exploration of solid minerals.” AllAfrica.com, 2015. Fig. 3,

5.0ROLE/CONTRIBUTIONS OF ENGINEERS IN THE MINING SECTOR

Modern day mining requires the application of science and technology to locate, extract and process solid minerals from the earth. Mining Engineering is associated with activities such as Geology, Chemical Engineering, Civil Engineering, Geotechnical Engineering, Surveying, Electrical and Mechanical.

  • Mining activities required to be carried out by the mining engineer include Discovery and exploration of mineral resources which requires design of mines
  • Production and Operation
  • Mine Closure
  • Mitigation of damages caused to environment by mining activities
  • Instrumentation at mine site
  • To tackle the infrastructural deficit in the country (either roads, rails, power, plants, machinery) as a whole engineering inputs are inevitable.

Fig.4, Mining Equipment

Nowadays modern equipment operates mechanically and electronically is deployed to mining fields to enhance operations. Our consulting engineers are to play major roles in the aforementioned areas.

6.0RECOMMENDATIONS

  • Government should take deliberate steps to source for raw materials required for the development of infrastructure such as steel for rail and bitumen for roads locally.
  • Galvanize local miners to form cooperatives and societies that will enhance their production capacity and ensure the operations are monitored by relevant agencies.
  • Government needs to strengthen the mining and cadastral office through funding, training and introducing gadgets and tools that will enhance the determination of the quality and estimate quantity of deposited minerals.
  • Partnership withforeign investors that will bring expertise and finance that will drive the industry
  • Adequate environmental laws need to be enacted to protect the life of miners and the communities they operate.
  • Government needs to make the laws governing mining more industrial friendly and complete all legal framework required to guide the steel sector.
  • Link mining sites via road and rail resultant ease of transportation will encourage mining activities.
  • Availability of adequate power will also enhance mining activity, indeed opening the coal industry will boost supply of power. At a time, considerable amount of power utilized in Nigeria was generated from coal and the coal industry provided energy to power locomotives. In Australia for instance, mining contributes 78% of the electricity generated in the country.

7.0CONCLUSION

It is our earnest expectation that our submission can be incorporated into the finalized Draft ACEN Agenda on Advocacy. We have a firm believe that mining can contribute in increasing the nations GDP. With our potentials, we can conveniently match our African counterparts in the mining sector.

REFERENCES

1.“Investment and Mining Opportunities” (PDF). Ministry of Solid Minerals Development. Retrieved 2008-04-12.

2.“Nigerian Mining”. Mining Africa. Retrieved 2017-01-18.

3.“Scope and Status of Privatization Activities in the Solid Mineral Sector of the Nigerian Economy” (PDF). Nigeria Bureau of Public Enterprises. 2007-01-12. Retrieved 2008-04-12.

4.“National Iron Ore Mining Company (NIOMCO)” (PDF). Nigerian Bureau of Public Enterprises. Retrieved 2008-04

5.Solid minerals, oil & gas: key to the Nigerian economy.

6.Nigeria’s Mining and Metal SectorInvestment Promotion Brochure, August 2016

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